
A 70th-minute header credited to skipper Mark Milligan gave them a 1-1 draw in Pyongyang. But Australia's AAP news agency reported that replays showed the ball may have been helped over the line by teammate Adrian Leijer's arm.
North Korean players contested the equalizer, telling Syrian referee Muhsen Basma that it should be disallowed.
Asian champions Iraq are in second place in the group, beaten at home by Australia last weekend. Iraq could have qualified had Australia lost in North Korea.
North Korea scored after 10 minutes and had the better of Australia's under-23s in the first half. The home side tired in the second half, but Australia were still lucky to get the equalizer 20 minutes from time.
The game completed a 14-match qualifying campaign for Australia across eight countries to reach Beijing.
DPA